P3 Components - Financing

Unlike a conventional delivery model that requires the public sector to fund a project throughout construction, a P3 consortium is responsible for financing a portion of or the entire capital cost of a P3 project during construction and/or design phases. The consortium either borrows money (debt) and/or put up its own funds (equity that is repaid when construction is complete) to build the project. Having ‘skin in the game’ motivates a consortium to complete a project on time and on budget.